SMEs with Annual Sales of RM150,000–RM500,000 Granted Six-Month E-Invoicing Extension

Good news for small and medium enterprises (SMEs)! The government has announced a six-month extension for SMEs with annual sales turnover of RM500,000 and below to comply with the mandatory e-invoicing system. Originally set for July 1, 2025, the deadline has now been extended to January 1, 2026, benefiting over 240,000 SMEs.

Understanding the E-Invoicing Phases:

Phase 1: Started on August 1, 2024, for businesses with an annual turnover above RM100 million.

Phase 2: Began on January 1, 2025, for businesses with turnover exceeding RM25 million.

Phase 3: SMEs earning between RM500,000 and RM25 million annually to comply by July 1, 2025.

Phase 4: New update—SMEs earning between RM150,000 and RM500,000 annually have until January 1, 2026 to comply.

The extension aims to give SMEs more time to prepare for the transition, following concerns that many businesses were not yet fully equipped or familiar with e-invoicing requirements. Meanwhile, MSMEs with annual sales below RM150,000 remain exempt from issuing e-invoices.

With this extension, SMEs should use the extra time to adapt by exploring e-invoicing solutions that streamline compliance. Stay ahead by ensuring your business is e-invoice ready before the deadline.

Looking for a seamless e-invoicing solution? Biztrak can help! We offer e-Invoicing-ready accounting software to help businesses adapt to this digital transformation with ease. Contact us today to learn more!